Archive for November 3, 2011

How Can Most People Save Any Money?

November 3, 2011 35 comments

Many CONservatives and LIEbertarians love to give bullshit advice such as- “Pull yourself by your bootstraps”, “You should have saved money”, “Thrift is the door to riches” etc.

But ask yourself a simple fact-based question- Given that the median per-capita income in the USA is $ 26,363/ year, can most people save a worthwhile amount of money?

While there are regional differences in cost of living and incomes, the simple fact that half of working age people (with any source of income) barely make 500$ a week should give you pause. Ever looked at the cost of basic necessities such as food, housing, utilities, medical insurance, gas and car repairs? Even the combined income of a couple who made median wage (52,726) could barely be enough to pay for a half-decent modest house, utilities, taxes, health insurance and the costs associated with having a couple of decent used cars. Even a single serious illness, prolonged job loss or another similar unfortunate but now all too common setback would put them in a downward spiral with no exit. Did you realize that the above costs do not include things like student loan repayment, costs associated with having and raising kids, parking tickets, fines for bullshit offenses and a host of other unexpected costs.

If you believe that people making the median per-capita income or less can save a worthwhile amount of money- show me the calculations and assumptions.